Land conservation and artistic vitality for communities in the Chicago region and the Lowcountry of South Carolina.

Our mission and how we work

FAQs

See below for questions about:
1. Who We Are
2. How We Work: Grants
3. How We Work: Loans and Guarantees
4. How We Work: Direct Charitable Activities
5. Lobbying and Political Campaigning

1. WHO WE ARE

1.1  Who were Gaylord and Dorothy Donnelley?

Gaylord Donnelley was a grandson of the founder of the R.R. Donnelley & Sons printing company, which by the late 19th century was one of the most-successful businesses in Chicago. Born in 1910, Gaylord in 1938 married Dorothy Ranney, who was also a member of a prominent Chicago-area family. Gaylord spent his working life in the family business, interrupted by a stint in the Army Air Corps during World War II; by the early 1950s he was running it, and he retired as its chairman in 1975. In late 1952 he and Dorothy created and funded this charitable foundation, though they also continued to make significant direct contributions to various causes and institutions. Bequests from both Gaylord (who died in 1992) and Dorothy (who died in 2002) significantly increased the foundation’s endowment and hence its annual grantmaking pool. Brief and detailed histories of the foundation can be found here. 

1.2  Is this foundation related to the Donnelley printing company?

The foundation and the company have always been legally separate, though from the 1950s to the 1970s many of the same individuals held leadership positions in both. Today there is no specific connection at all, as the printing company went public some time ago and the foundation has diversified its investment portfolio beyond Donnelley company stock. There are no longer any Donnelley family members among the printing company’s board of directors or executives.  

1.3  Why do you use "GDDF", why not just refer to yourselves as the "Donnelley Foundation"?

That’s to avoid confusion with a separate private foundation in Chicago called "The Donnelley Foundation", which was founded in 1957 by cousins of Gaylord Donnelley. Also, the printing company’s corporate grantmaking program is called the "RR Donnelley Foundation". So informally we use "GDDF" to refer to ourselves, and in lists of contributors we ask grantees to always spell out "Gaylord and Dorothy Donnelley Foundation".  

1.4 I’m a current grantee and I have a question about my grant. Which GDDF staff member should I contact?

If your question is about administrative matters such as deadlines, reporting requirements or our procedures, contact our grants manager, Susan Clark (sclark@gddf.org). If you have a programmatic question, contact our program directors: in South Carolina that’s John Sands (jsands@gddf.org), in Chicago it’s Paul Botts (pbotts@gddf.org).  

1.5 You’ve funded our arts organization for years and we want to make sure you come to the Opening Night of our next play, who should we send the VIP tickets to?

Much as we appreciate the thought, we’d rather you put those tickets to better use. We usually don’t attend opening nights or fundraisers, and when we're attending a grantee's event we buy our own tickets.  

1.6 How do I order a printed copy of your application guidelines and list of recent grantees?

We've gone paperless: we publish that information only on our website, www.gddf.org.  

2. HOW WE WORK: GRANTS

2.1 I’m with a non-profit group and thinking about seeking a GDDF grant for the first time; should I just submit a pre-proposal, or a letter of inquiry or an application?  Or should I call first to tell you about us and what we want to do? 

There’s no fixed answer to this question, and no prejudice against you either way; our primary concern is simply not causing overworked non-profit groups to waste time and energy. Be sure to read all of the "How We Work" sections of this website, as well as all of this FAQ. We ask that you not send a pre-proposal or letter of inquiry. If it seems obvious that your group strongly fits our guidelines, the simplest thing may be to go ahead and submit an application. The type of organization for which this is usually clearest is a small arts group seeking general-operating support. For project grants a call, or better yet an email, briefly describing what you have in mind may be better than submitting a formal proposal out of the blue. In South Carolina the contact person is John Sands (jsands@gddf.org), in Chicago it’s Paul Botts (pbotts@gddf.org).  

2.2 What is the difference between a "general operating" grant and a "project" grant?

A general-operating grant is given to an organization and is not limited to a specific project. A project grant is for a specific purpose, and the recipient must segregate and track the expenditure of those funds. A funded project might be something the organization has decided to do, beyond its usual operations, to carry out its mission (e.g. a public-awareness campaign, or a research effort) or something the organization needs in order to improve (e.g. creating a strategic plan or business plan).  

2.3  Your website says that in the arts, only organizations with budgets under $1 million can receive general-operating grants. Why is that?

The foundation’s board concluded in 1997 that a key source of new artistic vitality in the Chicago region is small emerging professional arts organizations. Few institutional funders specifically focus on such groups, partly because they are naturally higher-risk investments for the same reasons as any other type of small business. To help fill that funding gap we focus our general-operating support in the arts on organizations with annual expenses under $1 million. We do so with eyes wide open, knowing that small young arts groups tend to have less administrative capacity and financial stability than we expect of larger non-profits. In the South Carolina Lowcountry we take a similar approach though without the $1 million budget cap because of the smaller number of organizations. 

2.3.1  So that means larger arts organizations can’t apply for grants?

No it doesn’t. We make project grants for specific types of work (engaging youth in the arts, and collections), and annual-budget size is not a factor in those awards. It’s important to realize, though, that project grants never support a group’s general budget even indirectly. We will not, for example, cover part of the salary of an artistic director to oversee a theater group’s education program.  

2.4 So how much of a project’s direct costs should we ask the foundation for? 

Obviously the more funders are supporting a project the better. But that’s not the only consideration, and we don’t have any unspoken rules of thumb preventing us from being the first funder in or covering a large part of a project’s direct costs. We really don't want non-profit staffs wasting time trying to break the code, to figure out a polite sweet spot of "not-less-than-we-could-get-but-not-too-much-to-ask." So we offer a small social contract: be frank with us about what the project really costs and why, and in return we promise not to hold that candor against you as we’re discussing your project with our board.  This doesn’t of course mean we’re sure to say yes.  It does mean we’ll base the decision on the project’s caliber and cost, the strength of the organization doing it and whether it fits our guidelines, not on whether somebody’s made a good guess of the "right" amount to ask for.  

2.5  Do you ever make general operating grants to organizations other than small arts groups?

Yes but rarely, especially in the Chicago region. In order to make a general operating grant to a land conservation organization, or to a Chicagoland arts organization with an annual budget greater than $1 million, we need to already have a successful grantmaking history with that organization. The organization should be highly productive and stable and fit a high standard of uniqueness: not just that there is no other organization exactly like them, but none who are at all similar in that region. An unsolicited application for general-operating support, from a group we aren’t already funding and that isn’t a small arts group, is extremely unlikely to succeed.  

2.6  You don’t accept unsolicited proposals for grants to capital fundraising campaigns, but does that also rule out applications for the costs of a campaign such as printed materials or a fundraising consultant?

Yes it does.  

2.7 What is an "operating foundation" and why won’t you make a grant to one? 

Operating foundations, a specific IRS classification, use the bulk of their income to provide charitable services or to run charitable programs of their own. If a private grantmaking foundation such as GDDF provides support to an operating foundation, IRS rules require us to take "direct expenditure responsibility" for the use of our funds. That level of detailed oversight costs both organizations a great deal of staff time to carry out, so we avoid it.  

2.8 What do you mean by "capacity-building" grants?

Non-profits, as public corporations obligated to efficiently carry out their charitable purposes, have a hard time finding the time, patience and funds for self-reflection or internal planning. A half-century of experience investing in the work of non-profits, though, has taught us at GDDF just how valuable those sorts of processes are. Hence we are open to making project grants to cover the cost of good professional planning or training: strategic, marketing, fundraising, board development, etc. We do not expect to participate directly in a grantee’s planning process. We absolutely do subscribe to planning basics such as: if you haven’t written your plan down you don’t actually have one, and if you have a dozen priorities you really have none. We will also consider, when a robust plan makes a good case for it, startup support for critical new internal capacity such as a new fundraising or marketing staff position. We are unlikely to  cover the entire cost of such a new position even initially, and we will need to be convinced that the new position will shortly become sustainable from the organization’s general revenues. In Chicago we have helped create a new fund aimed specifically at capacity-building for small arts organizations. Visit www.artsworkfund.org to learn more. 

2.8.1 So if I get an Arts Work Fund grant, does that mean I can't apply to the foundation for a general operations grant?

Not at all! You can still apply for a foundation grant, in addition to an Arts Work Fund grant. They are separate grant programs; we just happen to be a contributor to the Arts Work Fund.

2.9 What’s the difference between a "strategic plan" and a "business plan"?

A strategic plan starts with the big picture and works down: where does our organization want to be in three years, or five? What are our strengths and weaknesses, and what are the key external opportunities and threats that we must reckon with? Does our mission statement still make sense or should it be altered? Of all the worthwhile things we could do, how will we prioritize the very short list to tackle first? A business plan is usually a second step after completing a strategic plan. It is more focused, laying out how an organization will carry out its operation or a specific project. A business plan establishes specific financial targets and describes how they can be met; identifies financing needs and solutions; describes operational structures; identifies cash-flow needs along the way; may identify key marketing challenges and strategies; etc. A simplified summary of the difference might be: a strategic plan is where we decide what we’re going to do and why, while a business plan is where we figure out how our strategic goals and strategies should change our finances, our marketing, our operations, etc.  

2.10 What are reasons you would decline a grant proposal from a group whose work is of good quality and fits the foundation’s subjects of interest?

We get many more applications than we can fund.  Beyond the obvious questions of subject matter and caliber of the work, deciding which projects and organizations represent the best grant investment is an art not a science. The foundation's board is assisted by our staff, most of whom have personal experience on the applicant side of this particular conversation. With all that said, here are some recurring themes among the reasons for the foundation to decline proposals:

• organizational weakness. For project proposals this means that the organization doesn’t appear to have the specific capacity to successfully carry out the project, or doesn’t seem to have enough resources lined up for it. For general-operating proposals this refers to broader indications of weakness such as recurring financial deficits, poor fundraising history, unrealistic plans, etc. Any proposal seeking more than 10% of an organization’s annual operations raises questions about that group’s viability. 
• organizational instability such as frequent changes in leadership, mission or goals. 
• weak or vague measures of success for a project. For example, "better appreciation of art by the kids" is not a useful measure of whether an arts-engagement effort is really making a difference, unless the project includes rigorous independent assessment of whether or not that is occurring. 
• vague or overly-broad strategic objectives for an organization. We’ve learned from lots of experience that a group which can’t clearly and specifically say what it is trying to accomplish right now, is unlikely to be going anywhere. If your key objectives are so broad that you couldn’t in fairness be held responsible for failing to meet them, then you don’t really have key objectives. 
• duplication of work that other groups have already done. This isn’t an inflexible rule: sometimes there’s new demand for a certain type of work, or the world has changed and a new method is needed. But that case must be convincingly made. So for example if in Chicago you’re proposing to map the region’s biodiversity and prioritize targets for land conservation, we’re going to ask what makes you think the Chicago Wilderness region suddenly needs another pretty conservation map.  

3. HOW WE WORK: LOANS AND GUARANTEES 

3.1 What is a "program-related investment"?

A charitable foundation’s grantmaking and other program work is funded by investment returns on its endowment; the foundation’s board has a fiduciary duty to invest the endowment prudently. A "program-related investment" is one made in support of the foundation’s mission interests (in our case, artistic vitality and land conservation), in which case we can ethically accept lower-than-normal financial gains or higher-than-normal financial risk. Some examples of this sort of work include making a loan to a non-profit organization, serving as guarantor of a loan, funding a revolving fund, or placing endowment funds with a bank which makes below-market loans to non-profits.  

3.2 Meaning you'll lend money to non-profits to help them work through budget shortfalls?

No, that would hardly be a responsible diversion of the foundation's endowment which finances our grantmaking. Program-related investments are always for projects, never for general operations.  Also, any project we make a loan to must have a specific revenue stream lined up to fund its repayment. Our fiduciary duty requires strong due diligence for any proposed loans or loan guarantees, so currently we will consider making program-related investments only to organizations who have already received GDDF funding.  

3.3 We are an existing GDDF grantee and have a program-related investment opportunity that you might find sensible. What are the deadlines for applying for a loan or loan guarantee, and which forms do I fill out?

There aren’t any. Each program-related investment idea is examined individually by the foundation, and must be specifically examined and approved by a board committee or the full board. If you are an existing GDDF grantee and have something along those lines to propose, contact a foundation staff member. In South Carolina the contact person is John Sands (jsands@gddf.org), in Chicago it’s Paul Botts (pbotts@gddf.org).  

4. HOW WE WORK: DIRECT CHARITABLE ACTIVITIES 

4.1 What is a "direct charitable activity"?

That’s when a foundation behaves like what most people think of as a non-profit organization, that is, carrying out a project. Of course all foundations are non-profits, with charitable missions and boards of directors just like any other environmental or arts group; but it’s relatively unusual for a foundation to choose "direct charitable activity" as a significant way to carry out its charitable purpose. The Gaylord and Dorothy Donnelley Foundation does a fair amount of it, led by staff members who have held staff positions at large and small non-profits. The costs of such work qualify as part of the annual expenditures required of a tax-exempt foundation under federal law, though they are always dwarfed in our annual finances by our grants to other non-profits.  

4.2 What sorts of projects do you take on?

A busy grantmaking foundation with relatively broad areas of interest naturally becomes something of a clearinghouse of ideas and methods for non-profit work in those subjects. This gives us an opportunity to identify projects useful to the field, such as convening key parties to share resources or ideas; carrying out pilot or demonstration projects of new solutions to existing issues; identifying bridges for the gaps between the work of existing groups; and conducting practical assessments of the non-profit sectors we invest our grant funds in.  

4.3 I’ve got a great idea for a project that a foundation might usefully carry out, do you want to hear it?

Absolutely, we can never have too many interesting ideas to sort through. In South Carolina contact John Sands (jsands@gddf.org), in Chicago contact Paul Botts (pbotts@gddf.org).  

5. LOBBYING AND POLITICAL CAMPAIGNING 

5.1 What exactly constitutes "lobbying" that you won’t fund?

IRS regulations prohibit us from funding any activity which constitutes lobbying under U.S. federal law and regulations. The core of that definition is efforts to influence legislative action, including attempts to get voters to contact their legislators. Note also that if the legislative action in question takes the form of a voter referendum then the legislators are the voters, meaning that putting up a billboard saying "Vote yes on Proposition 439" constitutes lobbying.  For details of course you need to consult an attorney.  Our bottom line is that we do not fund lobbying activity under any circumstances.  

5.2 Do you ever fund groups that get involved in political campaigns?

No. While tax-exempt non-profits other than private foundations can lobby governments within certain limits, federal law explicitly forbids them from participating in partisan political activity: work on behalf of or against particular candidates for elected office. An organization which does that cannot be granted tax-exempt status under section 501(c)(3) of the IRS code, and hence is never eligible for any funding from the Gaylord and Dorothy Donnelley Foundation.